Why Should You Buy Life Insurance?

Whether you are in a job, doing your business or working with professional skills, you must take a life insurance cover of at least 10 times your annual income.

Why should you buy a life insurance policy?

A life insurance policy protects the family from financial risk in the event of a person’s death. Suppose a person has bought a house by taking a home loan. Her children are studying in private school. The family is dependent on that person for all the household expenses.

If this person dies due to some disease or accident, then in case of his absence, his family does not come on the road, for this it is necessary to buy an insurance policy. In the event of his not taking insurance coverage, his dependent will get compensation from the insurance company, which can easily cut his further time.

Who needs life insurance?

One should take an insurance policy to protect the financial security of those in his family who are financially dependent on him:

If the person has wife, children and his parents are old and have no income of his own. One should definitely buy a life insurance policy.

The most common reason for buying a life insurance policy is to provide protection to the family against any unforeseen event. The amount received as compensation from the life insurance policy can be used to meet the expenses of the dependent member of the family for the next several years.

Have Debt or Liability:

If a person has made a purchase by taking a loan or has mortgaged his property, then he should buy a life insurance policy. This will not only help his family to pay off that debt in the event of his absence, but will also become a regular source of income for the family.

Who should buy a life insurance policy?

If you are the only earning member of your family, the first thing you should do is get your life insured.
Working Spouse – If you/your spouse is in job then both should buy life insurance policy.
If you have children, you can buy a life insurance policy in their name.

Partner in Partnership Firm:

If you have any person involved in Partnership Firm with you then both of you should buy life insurance policy.
This type of policy will provide financial protection to your firm in case of any financial loss arising out of the death of your partner.

When should you get insurance?

Generally, you should buy a life insurance policy as soon as you start a job. Term plans are the best option to get maximum coverage at low premiums for taking life insurance coverage.

To ensure the financial security of the person dependent on your income, you should get life insurance. The younger you are, the lower will be your premium in the life insurance policy.

For how long should you insure?

As long as your family members are dependent on your earnings for their expenses, you should buy an insurance policy only after considering the time. You should get life insurance for as long as you are the earning member of your family.

It is generally believed that if you are married at the age of 30 and you have two children by the age of 35, then their education etc. will be completed in the next 25 years and by then they will start a job. . Accordingly, you should take coverage for the age of 60-65 years in a life insurance policy.

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